FG, CBN unveil N250bn intervention facility for investors

Bitrus Nabasu

Bitrus Nabasu, the Permanent Secretary, Ministry of Petroleum Resources: says FG, CBN have unveiled N250 bn intervention facility

By Edith Ike-Eboh

The Federal Government of Nigeria has introduced a N250 billion intervention facility to stimulate finance and motivate investors in the gas value chain.

Mr Bitrus Nabasu, the Permanent Secretary, Ministry of Petroleum Resources, disclosed this while briefing newsmen, on Sunday in Abuja.

He said the partnership is between the Ministry of Petroleum Resources and the Central Bank of Nigeria (CBN).

“Therefore, in an effort to stimulate finance to this critical sector, the Ministry of Petroleum Resources in partnership with the Central Bank of Nigeria (CBN), introduced a N250 billion intervention facility to help motivate investment in the gas value chain.

“A description of the intervention facility can be found on the CBN website www.cbn.gov.ng and the ministry’s website at www.petroleumresources.gov.ng,’’ he said

He said the large scale projects under the intervention would be financed under the Power and Airlines Intervention Fund (PAIF) in line with existing guidelines and regulations of the Fund.

According to him, the small scale projects and retail distributions will be financed by NIRSAL Micro Finance Bank and other participating institutions under the Agribusiness Small and Medium Enterprises Investment Schemes (AGSMEIS).

The facility, he said, was designed to improve access to financing for private sector investment in the gas value chain, stimulate investment in the development of infrastructure to optimise the domestic gas resources for economic development

He listed other objectives of the facility to include the provision of a platform to fast track the adoption of Compressed Natural Gas (CNG) as the fuel of choice for transportation and power generation as well as Liquefied Natural Gas (LPG) for domestic cooking, transportation and captive power.

“It will also fast track the development of gas-based industries particularly petrol chemicals (Fertiliser, Methanol, etc), to support large industries such as agriculture, textile and related industries.

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“Provide leverage for additional private sector investment in the domestic gas market and boost employment across the country,’’ he said

The Permanent Secretary said the facility would also finance gas processing, small scale petrochemical and gas cylinder manufacturing plants as well as LCNG regasification modular systems.

Nabasu said it would equally finance AutoGas conversion kits or component manufacturing plants; CNG primary and secondary compression station, micro-distribution outlets and service centres for LPG.

“In addition, the facility will service the development and enhancement of autogas transportation system conversion and distribution infrastructure, enhancement of domestic cylinder production and distribution by manufacturing plants.

“Also; LPG wholesale outlet and many other mid to downstream gas value chain related activity recommended by the ministry,’’ he said, adding that parties with the capacity to develop and operate any of the fore listed projects are expected to demonstrate project development experience.

According to him, interested parties will need to demonstrate technical and commercial capacity as well as show evidence of experience and capacities to engage in their proposed businesses to enable them to access the fund.

“At a minimum, interested parties shall provide general information of interested parties, past experience and evidence of technical capabilities and organisational structure,’’ he said

He added that interested parties shall be responsible for planning, preparations, engineering and execution of the project, including CNG compression and storage facilities for online stations, virtual pipeline networks among others.

He said the ministry had invited proposals from interested parties such as manufacturers, processors, wholesale distribution, SMEs and retail distributors in the gas value chain business.

“Details of submission criteria could be found at the ministry’s website.

“All proposals shall be submitted to the ministry for endorsement and evaluation into the confidential box provided on the 10th floor, Room 3, Block D, NNPC Towers, Abuja,’’ he said.

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